Optimism of construction entrepreneurs increases confidence in the sector

The Development Confidence Index (ICST) measured by the Brazilian Institute of Economics of the Getúlio Vargas Basis (FGV IBRE) rose 0.8 factors in February, accumulating 94.4 factors – after 4 consecutive months of decline. The ICST represents the notion of businessmen in relation to the latest previous, the present state of affairs and the sector’s views for the longer term.

In quarterly transferring averages, the index fell 0.4 factors, however the optimistic response rekindled optimism amongst builders and professionals within the subject.

For economist Ana Maria Castelo, since final yr’s elections, the market has proven insecurity in relation to what would occur: “Within the final 4 months, expectations had deteriorated, as a result of uncertainties within the surroundings – each macroeconomic and sectorial”, defined.

Nevertheless, in accordance with her, the expectations of building entrepreneurs improved primarily after the launch of the federal authorities’s “Minha Casa, Minha Vida” program. “This announcement introduced a brand new spirit and this reversed, in a good manner, in relation to expectations and calls for for the approaching months”, clarified the economist.

Belief

“Confidence has two elements: one refers back to the notion of the present enterprise scenario and the views concerning what’s going to occur”, he detailed, including: “It was this element, of expectations, which since October had registered a major worsening as a result of uncertainties of what would occur to the financial system and the sector”.

Response

Nevertheless, in accordance with the economist, building confirmed a good response within the month of February, with a development of three.4 factors in comparison with the earlier month – already made the seasonal adjustment and with the constructing section.

“This led to an enchancment in expectations, definitely in response to the announcement of the brand new Minha Casa Minha Vida program”, identified Castelo, who works as coordinator of Development Initiatives at FGV IBRE.